0001528930-21-000013 | 10-K | XBRL Viewer

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 26, 2020	Mar. 04, 2021	Jun. 27, 2020
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 26, 2020
Current Fiscal Year End Date	--12-26
Document Transition Report	false
Entity File Number	001-35588
Entity Registrant Name	FRANCHISE GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3561876
Entity Address, Address Line One	2387 Liberty Way
Entity Address, City or Town	Virginia Beach,
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23456
City Area Code	757
Local Phone Number	493-8855
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 278,870,280
Entity Common Stock, Shares Outstanding		40,094,915
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders are incorporated by reference into Part III hereof.
Entity Central Index Key	0001528930
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	FRG
Security Exchange Name	NASDAQ
Series A Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	7.50% Series A Cumulative Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share
Trading Symbol	FRGAP
Security Exchange Name	NASDAQ

Consolidated Balance Sheets - USD ($)	Dec. 26, 2020	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 151,502,000	$ 39,581,000
Current receivables, net	90,610,000	79,693,000
Inventories, net	302,307,000	300,312,000
Other Assets, Current	20,772,000	20,267,000
Total current assets	565,191,000	439,853,000
Property, equipment, and software, net	143,506,000	150,147,000
Accounts and Financing Receivable, after Allowance for Credit Loss, Noncurrent	16,689,000	18,638,000
Goodwill	456,977,000	134,301,000
Other intangible assets, net	134,695,000	77,590,000
Operating Lease, Right-of-Use Asset	510,875,000	462,610,000
Other assets, net	9,728,000	15,406,000
Total assets	1,837,661,000	1,298,545,000
Current liabilities:
Current installments of long-term debt	105,388,000	218,384,000
Operating Lease, Liability, Current	131,690,000	107,680,000
Accounts payable and accrued expenses	265,016,000	158,995,000
Deferred revenue - current	36,879,000	16,409,000
Total current liabilities	538,973,000	501,468,000
Long-term debt, excluding current installments	468,655,000	245,236,000
Long-term Debt and Lease Obligation	407,014,000	394,307,000
Other Liabilities, Noncurrent	37,852,000	5,773,000
Total liabilities	1,452,494,000	1,146,784,000
Commitments and Contingencies
Stockholders' equity:
Common stock	401,000	183,000
Preferred stock	13,000	19,000
Additional paid-in capital	382,383,000	108,339,000
Accumulated other comprehensive income (loss), net of taxes	(1,399,000)	(1,538,000)
Retained earnings	3,769,000	18,388,000
Stockholders' Equity Attributable to Parent	385,167,000	125,391,000
Noncontrolling Interest in Variable Interest Entity	0	26,370,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	385,167,000	151,761,000
Total liabilities and stockholders' equity	$ 1,837,661,000	$ 1,298,545,000

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 26, 2020	Dec. 28, 2019
Preferred stock, shares authorized (in shares)	20,000,000.0
Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	180,000,000	180,000,000
Common stock, shares issued (in shares)	40,092,260	18,250,225
Common stock, shares outstanding	40,092,260	18,250,225
Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	1,250,000	1,886,667
Preferred stock, shares outstanding (in shares)	1,250,000	1,886,667

Consolidated Statements of Income - USD ($)	8 Months Ended		12 Months Ended
Consolidated Statements of Income - USD ($)	Dec. 28, 2019	Dec. 29, 2018	Dec. 26, 2020	Apr. 30, 2019	Apr. 30, 2018
Revenues:
Total revenues	$ 149,510,000	$ 16,647,000	$ 2,152,504,000	$ 132,546,000	$ 174,872,000
Lease Income	23,636,000	0	64,267,000	0	0
Operating expenses:
Selling, general, and administrative expenses	173,860,000	68,267,000	916,274,000	124,060,000	162,321,000
Cost of Goods Sold, Leases	8,661,000	0	21,905,000	0	0
Cost of Goods and Services Sold	81,249,000	0	1,160,108,000	0	0
Restructuring Costs	0	9,345,000	0	9,345,000	4,952,000
Total operating expenses	255,109,000	77,612,000	2,076,382,000	133,405,000	167,273,000
Income from operations	(105,599,000)	(60,965,000)	76,122,000	(859,000)	7,599,000
Other income (expense):
Foreign currency transaction loss	37,000	(12,000)	(5,187,000)	(113,000)	63,000
Interest expense	(9,349,000)	(1,802,000)	(101,751,000)	(3,023,000)	(3,181,000)
Income before income taxes	(114,911,000)	(62,779,000)	(30,816,000)	(3,995,000)	4,481,000
Income tax expense	(10,445,000)	(19,726,000)	(57,970,000)	(1,839,000)	4,346,000
Net Income (Loss) Attributable to Noncontrolling Interest	(104,466,000)	(43,053,000)	27,154,000	(2,156,000)	135,000
Net Income (Loss) Attributable to Parent	(68,427,000)	(43,053,000)	25,064,000	(2,156,000)	125,000
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic	$ (36,039,000)	$ 0	$ 2,090,000	$ 0	$ 10,000
Earnings Per Share, Basic	$ (4.11)	$ (3.17)	$ 0.70	$ (0.16)	$ 0.01
Earnings Per Share, Diluted	$ (4.11)	$ (3.17)	$ 0.70	$ (0.16)	$ 0.01
Net income per share attributable to Class A and Class B common stockholders:
Weighted Average Number of Shares Outstanding, Diluted	16,669,065	13,602,774	34,971,935	13,800,884	13,977,748
Common Stock, Dividends, Per Share, Declared	$ 16,669,065	$ 13,602,774	$ 34,531,362	$ 13,800,884	$ 12,928,762
Class A Common stock
Other income (expense):
Net Income (Loss) Attributable to Parent				$ (2,156,000)	$ 133,000
Earnings Per Share, Basic	$ (4.11)		$ 0.70	$ (0.16)	$ 0.01
Earnings Per Share, Diluted					$ 0.01
Net income per share attributable to Class A and Class B common stockholders:
Weighted Average Number of Shares Outstanding, Basic	16,669,065		34,531,362	13,800,884	12,728,762
Weighted Average Number of Shares Outstanding, Diluted					13,977,748
Product [Member]
Revenues:
Total revenues	$ 96,139,000	$ 0	$ 1,899,662,000	$ 0	$ 0
Operating expenses:
Cost of Goods and Services Sold	71,820,000	0	1,136,054,000	0	0
Service [Member]
Revenues:
Total revenues	29,735,000	16,647,000	188,575,000	132,546,000	174,872,000
Operating expenses:
Cost of Goods and Services Sold	$ 768,000	$ 0	$ 2,149,000	$ 0	$ 0

Consolidated Statements of Comprehensive Income - USD ($)	8 Months Ended		12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 26, 2020	Apr. 30, 2019	Apr. 30, 2018
Net income	$ (68,427,000)	$ (43,053,000)	$ 25,064,000	$ (2,156,000)	$ 125,000
Unrealized (loss) gain on interest rate swap agreement, net of taxes of ($15), ($16), $(23) and $22, respectively	(40,000)	(18,000)	(103,000)	(36,000)	58,000
Other Comprehensive Income (Loss), Net of Tax	372,000	(672,000)	139,000	(563,000)	737,000
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(104,094,000)	(43,725,000)	27,293,000	(2,719,000)	872,000
Foreign currency translation adjustment	(412,000)	654,000	(242,000)	527,000	(679,000)
Comprehensive income	(68,183,000)	(43,725,000)	25,378,000	(2,719,000)	872,000
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	$ 35,911,000	$ 0	$ (1,915,000)	0	0
AOCI Attributable to Parent [Member]
Other Comprehensive Income (Loss), Net of Tax				$ (563,000)	$ 737,000

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	8 Months Ended		12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 26, 2020	Apr. 30, 2019	Apr. 30, 2018
Statement of Comprehensive Income [Abstract]
Unrealized Loss on Interest Rate Swap, Value	$ (15)	$ (16)	$ (24)	$ (23)	$ 22

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Additional paid-in capital	Accumulated other comprehensive income (loss), net	Retained earnings	Retained earnings Cumulative Effect, Period of Adoption, Adjustment	Exchangeable shares	Total Equity [Member]	Total Equity [Member] Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling Interest [Member]	Class A Common stock	Class B Common stock	Special voting preferred stock	Exchangeable shares	Preferred Stock	Common Stock [Member]	Buddy's Partners Asset Acquisition [Member]	Buddy's Partners Asset Acquisition [Member] Additional paid-in capital	Buddy's Partners Asset Acquisition [Member] Total Equity [Member]	Buddy's Partners Asset Acquisition [Member] Preferred Stock	Buddy's [Member]	Buddy's [Member] Additional paid-in capital	Buddy's [Member] Total Equity [Member]	Buddy's [Member] Class A Common stock	Sears Outlet [Member]	Sears Outlet [Member] Additional paid-in capital	Sears Outlet [Member] Total Equity [Member]	Sears Outlet [Member] Class A Common stock	Vitamin Shoppe [Member]	Vitamin Shoppe [Member] Additional paid-in capital	Vitamin Shoppe [Member] Total Equity [Member]	Vitamin Shoppe [Member] Class A Common stock
Stockholders' Equity Attributable to Parent			$ 8,371,000	$ (2,084,000)	$ 110,029,000		$ 10,000				$ 127,000	$ 2,000	$ 0
Net Income (Loss) Attributable to Noncontrolling Interest	$ (135,000)				(135,000)
Balance at beginning of period (in shares) at Apr. 30, 2017							1,000				12,683	200	0
Balance at beginning of period at Apr. 30, 2017	116,455,000
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)											131
Exercise of stock options	3,105,000		95,000
Payments of Dividends	(9,025,000)				(9,025,000)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent	679,000
Unrealized Loss on Interest Rate Swap, Value	(22,000)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	58,000
Other Comprehensive Income (in shares)											9
Net Income (Loss) Available to Common Stockholders, Basic											$ 123,000	$ 2,000
Other Comprehensive Income (Loss), Net of Tax	737,000			737,000
Adjustment to APIC, Share-based Compensation, Requisite Service Period Reconition	95,000
Stock Issued During Period, Value, Stock Options Exercised, attributable to parent											$ 1,000
Stock Issued During Period, Value, Stock Options Exercised, Attributable to Noncontrolling Interest			3,104,000
Unsolicited Tender Offer Costs	0
Balance at end of period (in shares) at Apr. 30, 2018							1,000				12,823	200	0
Balance at end of period at Apr. 30, 2018	111,502,000	$ (3,794,000)
Stockholders' Equity Attributable to Parent			11,570,000	(1,347,000)	101,139,000	$ (3,794,000)	$ 10,000				$ 128,000	$ 2,000	$ 0
Net Income (Loss) Attributable to Noncontrolling Interest	2,156,000
Increase (Decrease) in Stockholders' Equity
Payments of Dividends	(2,257,000)				(2,257,000)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent	(527,000)
Unrealized Loss on Interest Rate Swap, Value	23,000
Stock Issued During Period, Shares, Conversion of Convertible Securities											1,200	(200)
Stock Issued During Period, Value, Conversion of Convertible Securities	10,000										$ 12,000	$ (2,000)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	(36,000)
Net Income (Loss) Available to Common Stockholders, Basic											$ (2,156,000)
Other Comprehensive Income (Loss), Net of Tax	(563,000)			(563,000)
stock issued during period, shares, conversion of preferred stock to common stock														(1,000)
stock issued during period, value, conversion of preferred stock to common stock	(10,000)													$ (10,000)
stock issued during period, shares, share based compensation , net of forfe											14
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition			153,000
Adjustment to APIC, Share based Compensation,Requisite Service Period Recognition, Attributable to Noncontrolling Interest			829,000
Adjustment to APIC, Share-based Compensation, Requisite Service Period Reconition	153,000
Stock Issued During Period, Shares, Acquisitions											12
Stock Issued During Period, Value, Acquisitions	829,000
Unsolicited Tender Offer Costs	0
Balance at end of period (in shares) at Apr. 30, 2019											14,049	0	0		0
Balance at end of period at Apr. 30, 2019	103,714,000	$ 319,000
Increase (Decrease) in Stockholders' Equity
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	(2,156,000)				(2,156,000)
Stockholders' Equity Attributable to Parent			12,552,000	(1,910,000)	92,932,000	$ 319,000	$ 0	$ 103,714,000	$ 319,000		$ 140,000	$ 0	$ 0		$ 0
Stockholders' Equity Attributable to Noncontrolling Interest										$ 0
Net Income (Loss) Attributable to Noncontrolling Interest	104,466,000									(36,167,000)
Exercise of stock options	500,000
Payments of Dividends	(6,436,000)				(6,436,000)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent	412,000
Unrealized Loss on Interest Rate Swap, Value	15,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	(40,000)
Net Income (Loss) Available to Common Stockholders, Basic								(68,427,000)			$ (68,427,000)
Other Comprehensive Income (Loss), Net of Tax	372,000
stock issued during period, shares, share based compensation , net of forfe											208
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition			2,200,000					2,202,000			$ 2,000
Adjustment to APIC, Share-based Compensation, Requisite Service Period Reconition	2,202,000
Stock Issued During Period, Value, Stock Options Exercised, attributable to parent				372,000				372,000
Stock Issued During Period, Value, Stock Options Exercised, Attributable to Noncontrolling Interest										128,000
Acquisition, Issuance of Stock, Shares															1,617
Acquisition, Stock Issued During the Period, Value	87,950,000		87,934,000												$ 16,000
Acquisition, Stock Issued During the Period, Value, Attributable to Parent								87,950,000
Noncontrolling Interest in Period, Value	0		(62,409,000)
Acquisition Costs, Period Cost, attributable to parent								(62,409,000)
Acquisition Costs, Period Cost, Attributable to Noncontrolling Interest										62,409,000
Stock Issued During Period, Shares, Acquisitions											74						270
Stock Issued During Period, Value, Acquisitions	2,992,000		2,991,000					2,992,000			$ 1,000						$ 16,200,000	$ 16,197,000	$ 16,200,000	$ 3,000
Acquisition, Common stock, issued during period, shares																								$ 2,083,000				$ 3,333,000				$ 2,439,000
Acquisition, Common stock, issued during period, value																								$ 21,000				$ 33,000				$ 25,000
preferred stock, issued during period, value																					$ 25,000,000	$ 24,979,000	$ 25,000,000		$ 40,000,000	$ 39,967,000	$ 40,000,000		$ 31,143,000	$ 31,118,000	$ 31,143,000
Unsolicited Tender Offer Costs	(47,229,000)		47,190,000					47,229,000			$ 39,000					$ 3,936,000
Balance at end of period (in shares) at Dec. 28, 2019											18,250				1,887
Balance at end of period at Dec. 28, 2019	151,761,000
Increase (Decrease) in Stockholders' Equity
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	(104,594,000)				(68,427,000)
Stockholders' Equity Attributable to Parent	125,391,000		108,339,000	(1,538,000)	18,388,000			125,391,000			$ 183,000				$ 19,000
Dividends Payable								(6,436,000)
Stockholders' Equity Attributable to Noncontrolling Interest										26,370,000
Net Income (Loss) Attributable to Noncontrolling Interest	(27,154,000)
Exercise of stock options (in shares)											50
Exercise of stock options	520,000		519,000					520,000			$ 1,000
ProfitLoss	27,154,000							25,064,000		2,090,000
Payments of Dividends	(41,286,000)				(41,286,000)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent	242,000
Unrealized Loss on Interest Rate Swap, Value	24,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	(103,000)
Net Income (Loss) Available to Common Stockholders, Basic	24,309,000
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest										(175,000)
Other Comprehensive Income (Loss), Net of Tax	139,000
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition	8,810,000		8,810,000					8,810,000			66,000
Noncontrolling Interest in Period, Value	(2,358,000)		23,744,000	(175,000)
Acquisition Costs, Period Cost, attributable to parent								23,569,000
Acquisition Costs, Period Cost, Attributable to Noncontrolling Interest										(25,927,000)
Acquisition, Common stock, issued during period, shares											12,292,000
Acquisition, Common stock, issued during period, value	229,015,000		228,892,000					229,015,000			$ 123,000
preferred stock, issued during period, shares															1,250,000
preferred stock, issued during period, value	29,483,000		29,470,000					29,483,000							$ 13,000
Unsolicited Tender Offer Costs	0
Balance at end of period (in shares) at Dec. 26, 2020											40,092				1,250
Balance at end of period at Dec. 26, 2020	385,167,000
Increase (Decrease) in Stockholders' Equity
Common Stock, Preferred converted, Value											$ 94,000
Preferred Stock, Converted to Common, Value	(9,953,000)		(10,028,000)					(9,953,000)							$ (19,000)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax				314,000
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent	139,000
Dividends, Preferred Stock, Cash	(755,000)				(755,000)			(755,000)
Adjustments to Additional Paid in Capital, Tax Receivable Agreement, Initial Liability	(7,363,000)		(7,363,000)					(7,363,000)
Adjustment to Stockholder Equity					2,358,000			2,358,000		(2,358,000)
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent								314,000
Stockholders' Equity Attributable to Parent	$ 385,167,000		$ 382,383,000	$ (1,399,000)	$ 3,769,000			385,167,000			$ 401,000				$ 13,000
Dividends Payable								$ (41,286,000)
Stockholders' Equity Attributable to Noncontrolling Interest										$ 0
Common Stock, Preferred converted, Shares											9,434
Preferred Stock, Converted to Common, Shares															(1,887)

Consolidated Statement of Stockholders' Equity Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($)	8 Months Ended	12 Months Ended
	Dec. 28, 2019	Dec. 26, 2020	Apr. 30, 2019	Apr. 30, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividend per share	$ 0.25	$ 0.375	$ 0.16	$ 0.64
Preferred dividend declared		7.50%

Consolidated Statements of Cash Flows - USD ($)	8 Months Ended		12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 28, 2019	Dec. 29, 2018	Dec. 26, 2020	Apr. 30, 2019	Apr. 30, 2018
Proceeds from Sale of Intangible Assets	$ 279,000	$ 1,207,000	$ 36,349,000	$ 1,229,000	$ 451,000
Payments of Ordinary Dividends	0	(2,244,000)	(29,350,000)	(2,244,000)	(8,922,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	22,163,000	(14,541,000)	106,356,000	4,461,000	2,095,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	45,146,000	3,981,000	151,502,000	22,983,000	18,522,000
Interest Paid, Excluding Capitalized Interest, Operating Activities	1,140,000	4,031,000	1,858,000	4,031,000	7,393,000
Income Taxes Paid, Net	(4,180,000)	(1,577,000)	(49,825,000)	(2,734,000)	(3,383,000)
Provision for doubtful accounts	4,751,000	5,150,000	5,930,000	8,738,000	12,396,000
Other Depreciation and Amortization	32,401,000	8,429,000	62,543,000	14,084,000	14,416,000
Amortization of deferred financing costs	319,000	169,000	30,635,000	38,000	155,000
Gain (Loss) on Disposition of Other Assets	(900,000)	(5,244,000)	(85,000)	(5,833,000)	(5,261,000)
Share-based Payment Arrangement, Noncash Expense	3,102,000	604,000	9,484,000	999,000	3,680,000
Gain (Loss) on Sale of Intangible and Other Assets	1,106,000	155,000	4,133,000	(694,000)	2,401,000
Income (Loss) from Equity Method Investments	9,275,000	200,000	(1,092,000)	(586,000)	2,369,000
Increase (Decrease) in Accounts and Other Receivables	226,000	(9,726,000)	19,811,000	(3,035,000)	2,261,000
Income taxes	(2,012,000)	(23,546,000)	(8,059,000)	(6,886,000)	(798,000)
Increase (Decrease) in Other Current Assets	(27,038,000)	(1,470,000)	5,573,000	3,656,000	(878,000)
Accounts payable and accrued expenses	(4,414,000)	(12,510,000)	23,927,000	(338,000)	(341,000)
Increase (Decrease) in Inventories	10,134,000	0	97,681,000	0	0
Increase (Decrease) in Deferred Revenue	1,369,000	(3,102,000)	20,537,000	(3,842,000)	(1,106,000)
Net Cash Provided by (Used in) Operating Activities	(41,485,000)	(51,774,000)	241,492,000	17,129,000	27,645,000
Payments to Operating Loans to Franchisees	22,483,000	28,940,000	34,136,000	68,283,000	73,796,000
Payments received on operating loans to franchisees	827,000	2,048,000	50,291,000	67,556,000	72,647,000
Assets Acquired from Franchisees and Area Developers	3,491,000	139,000	6,587,000	229,000	2,926,000
Payments to Acquire Businesses, Net of Cash Acquired	317,251,000	0	353,423,000	0	0
Proceeds from Sale of Property, Plant, and Equipment	0	0	1,224,000	0	0
Payments to Acquire Property, Plant, and Equipment	1,136,000	2,391,000	34,931,000	2,939,000	5,388,000
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	(343,255,000)	(28,215,000)	(341,213,000)	(2,666,000)	(9,012,000)
Payments for Repurchase of Common Stock	0	0	0	88,000	(1,000)
Unsolicited Tender Offer Costs	(47,229,000)	0	0	0	0
Payments of Debt Issuance Costs	15,071,000	0	16,865,000	0	0
Proceeds from Issuance of Debt	280,000,000	0	586,000,000	0	0
Payment, Tax Withholding, Share-based Payment Arrangement	110,000	83,000	487,000	83,000	576,000
Proceeds from the exercise of stock options	2,202,000	0	520,000	153,000	95,000
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	0	0	(4,716,000)	0	0
Repayments of Long-term Debt	13,054,000	4,235,000	505,486,000	7,502,000	7,432,000
Borrowings under revolving credit facility	129,260,000	75,946,000	184,665,000	123,615,000	178,251,000
Repayments of Long-term Lines of Credit	25,403,000	3,692,000	235,614,000	123,615,000	178,251,000
Proceeds from Issuance of Common Stock	96,143,000	0	198,004,000	0	0
Proceeds from Issuance of Preferred Stock and Preference Stock	0	0	29,482,000	0	0
Net Cash Provided by (Used in) Financing Activities, Continuing Operations	406,738,000	65,692,000	206,153,000	(9,764,000)	(16,834,000)
Effect of exchange rate changes on cash, net	165,000	(244,000)	(76,000)	(238,000)	296,000
Net Income (Loss) Attributable to Parent	(68,427,000)	(43,053,000)	25,064,000	(2,156,000)	125,000
Net Income (Loss) Attributable to Noncontrolling Interest	(104,466,000)	(43,053,000)	27,154,000	(2,156,000)	135,000
Payments to Acquire Businesses, Net of Cash Acquired	(317,251,000)	0	(353,423,000)	0	0
Cash flows from operating activities:
Net income	(68,427,000)	(43,053,000)	25,064,000	(2,156,000)	125,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	4,751,000	5,150,000	5,930,000	8,738,000	12,396,000
Other Depreciation and Amortization	32,401,000	8,429,000	62,543,000	14,084,000	14,416,000
Impairment of goodwill and other intangible assets			20,200,000
Amortization of deferred financing costs	319,000	169,000	30,635,000	38,000	155,000
Gain (Loss) on Disposition of Other Assets	(900,000)	(5,244,000)	(85,000)	(5,833,000)	(5,261,000)
Share-based Payment Arrangement, Noncash Expense	3,102,000	604,000	9,484,000	999,000	3,680,000
Gain on bargain purchases and sales of Company-owned offices	(1,106,000)	(155,000)	(4,133,000)	694,000	(2,401,000)
Equity in loss of affiliate	(9,275,000)	(200,000)	1,092,000	586,000	(2,369,000)
Changes in:
Accounts payable and accrued expenses	(4,414,000)	(12,510,000)	23,927,000	(338,000)	(341,000)
Income taxes	(2,012,000)	(23,546,000)	(8,059,000)	(6,886,000)	(798,000)
Increase (Decrease) in Accounts and Other Receivables	226,000	(9,726,000)	19,811,000	(3,035,000)	2,261,000
Cash flows from investing activities:
Issuance of operating loans to franchisees	(22,483,000)	(28,940,000)	(34,136,000)	(68,283,000)	(73,796,000)
Payments received on operating loans to franchisees	827,000	2,048,000	50,291,000	67,556,000	72,647,000
Purchases of Company-owned offices, AD rights, and acquired customer lists	(3,491,000)	(139,000)	(6,587,000)	(229,000)	(2,926,000)
Purchases of property, equipment, and software	(1,136,000)	(2,391,000)	(34,931,000)	(2,939,000)	(5,388,000)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	(343,255,000)	(28,215,000)	(341,213,000)	(2,666,000)	(9,012,000)
Cash flows from financing activities:
Proceeds from the exercise of stock options	2,202,000	0	520,000	153,000	95,000
Repurchase of common stock	0	0	0	(88,000)	1,000
Repayment of other long-term debt	(13,054,000)	(4,235,000)	(505,486,000)	(7,502,000)	(7,432,000)
Increase (Decrease) in Other Current Assets	(27,038,000)	(1,470,000)	5,573,000	3,656,000	(878,000)
Borrowings under revolving credit facility	129,260,000	75,946,000	184,665,000	123,615,000	178,251,000
Repayments under revolving credit facility	(25,403,000)	(3,692,000)	(235,614,000)	(123,615,000)	(178,251,000)
Proceeds from Issuance of Common Stock	96,143,000	0	198,004,000	0	0
Unsolicited Tender Offer Costs	(47,229,000)	0	0	0	0
Payments of Debt Issuance Costs	(15,071,000)	0	(16,865,000)	0	0
Proceeds from Issuance of Debt	280,000,000	0	586,000,000	0	0
Cash paid for taxes on exercises/vesting of stock-based compensation	(110,000)	(83,000)	(487,000)	(83,000)	(576,000)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations	406,738,000	65,692,000	206,153,000	(9,764,000)	(16,834,000)
Effect of exchange rate changes on cash, net	165,000	$ (244,000)	(76,000)	$ (238,000)	$ 296,000
Cash and cash equivalents at beginning of year			39,581,000
Cash and cash equivalents at end of year	$ 39,581,000		$ 151,502,000

Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows - Supplemental Disclosures - USD ($)	8 Months Ended		12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 26, 2020	Apr. 30, 2019	Apr. 30, 2018
Income Taxes Paid, Net	$ 4,180,000	$ 1,577,000	$ 49,825,000	$ 2,734,000	$ 3,383,000
Interest Paid, Excluding Capitalized Interest, Operating Activities	1,140,000	4,031,000	1,858,000	4,031,000	7,393,000
Payments to Acquire Software	0	0	5,025,000	0	0
Payment of Financing and Stock Issuance Costs	0	0	31,013,000	0	0
Taxes Receivable Agreement, Other long Term Liabilities	0	0	16,775,000	0	0
Cash and cash equivalents	39,581,000		151,502,000
Restricted Cash, Noncurrent	5,565,000		0
Restricted Cash and Cash Equivalents	45,146,000		151,502,000
Supplemental disclosures of cash flow information:
Accrued capitalized software costs included in accounts payable	$ 1,140,000	$ 4,031,000	$ 1,858,000	$ 4,031,000	$ 7,393,000

Organization and Significant Accounting Policies - Text Blocks	12 Months Ended
	Dec. 26, 2020
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	Organization and Significant Accounting Policies Description of Business. Franchise Group, Inc. (the "Company"), a Delaware corporation, is a franchisor, operator and acquirer of franchised and franchisable businesses that it believes it can scale using its operating expertise. On July 10, 2019, the Company formed Franchise Group New Holdco, LLC (“New Holdco”), which completed the acquisition of Buddy's Newco, LLC ("Buddy's"). On October 23, 2019, the Company completed the acquisition of the Sears Outlet ("Sears Outlet") business from Sears Hometown and Outlet Stores, Inc. (included in the results of operations of the American Freight segment). On December 16, 2019, the Company completed its acquisition of The Vitamin Shoppe, Inc. ("Vitamin Shoppe"). On February 14, 2020, the Company completed its acquisition of the American Freight Group, Inc. ("American Freight") as described in “Note 2 - Acquisitions”. New Holdco holds all of the Company’s operating subsidiaries. Change in Fiscal Year-End. On October 1, 2019, the Board of Directors of the Company approved a change in the Company's fiscal year-end from April 30 to the Saturday closest to December 31 of each year. The decision to change the fiscal year-end was related to the Company's recent acquisitions to more closely align the Company’s operations and internal controls with that of its subsidiaries. As a result of the change in fiscal year-end the Company previously filed a Transition Report on Form 10-K/T reporting the Company's financial results for the period beginning May 1, 2019 through December 28, 2019. The consolidated balance sheet data as of December 28, 2019, was derived from the Company’s Transition Report on Form 10-K/T, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 24, 2020 (the "2019 Transition Report"). Acquisitions. On February 14, 2020 the Company completed its acquisition of American Freight pursuant to the terms of the Agreement and Plan of Merger with American Freight, for an aggregate purchase price of $357.3 million. On December 16, 2019, the Company completed its acquisition of the Vitamin Shoppe segment pursuant to the terms of the Agreement and Plan of Merger, dated August 7, 2019 with Vitamin Shoppe, for an aggregate purchase price of $161.8 million. On October 23, 2019, the Company completed its acquisition of Sears Outlet and nine Buddy’s Home Furnishing franchises from Sears Hometown and Outlet Stores, Inc. pursuant to the terms of the Equity and Asset Purchase Agreement, dated as of August 27, 2019 for an aggregate purchase price of $128.8 million. On September 30, 2019, the Company acquired 21 Buddy’s Home Furnishings stores from a series of franchisees of Buddy’s New Holdco, a wholly-owned direct subsidiary of the Company. In connection with the acquisition, the sellers received, in aggregate, 1,350,000 New Holdco units and 270,000 shares of Voting Non-Economic Preferred Stock for an estimated purchase price of $16.2 million. In addition, the Company also forgave $0.6 million of receivables due to Buddy’s from the sellers. This resulted in an aggregated purchase price of $16.8 million. On August 23, 2019, the Company acquired 41 Buddy’s Home Furnishing stores from A-Team Leasing LLC. (“A-Team”), a franchisee of its Buddy’s segment, for an aggregate purchase price of $26.6 million. On July 10, 2019 (the "Buddy’s Acquisition Date"), the Company entered into and completed certain transactions contemplated by an Agreement of Merger and Business Combination Agreement with Buddy's, New Holdco, Franchise Group B Merger Sub, LLC, a wholly-owned indirect subsidiary of New Holdco and Vintage RTO, L.P., solely in its capacity as the representative of the former equity holders of Buddy's (the "Buddy's Members"), to acquire Buddy's in a stock transaction (the "Buddy’s Acquisition"). At the Buddy’s Acquisition Date, each outstanding unit of Buddy’s was converted into the right to receive 0.459315 units of New Holdco (“New Holdco units”) and 0.091863 shares of Preferred Stock. Each of the New Holdco units held by the Buddy’s Members was, together with one-fifth of a share of Voting Non-Economic Preferred Stock held by the Buddy’s Members, redeemable in exchange for one share of our common stock after an initial six-month lockup period following their issuance, which has expired. As of the Buddy’s Acquisition Date, on an as-converted basis, the Buddy's Members' aggregate ownership of New Holdco units and share of Preferred Stock represent approximately 36.44% of our outstanding common stock, which implied an enterprise value of Buddy's of approximately $122 million and an equity value of $12.00 per share of our common stock. The Company is the sole managing member of New Holdco and it is consolidated for financial reporting purposes. New Holdco units held by the Buddy's Members are recorded as a non-controlling interest in the consolidated financial statements. As of April 1, 2020, the Company redeemed all outstanding New Holdco units for shares of common stock of the Company and now has an 100% interest in New Holdco. The assets acquired and the liabilities assumed in the acquisitions above are recorded at fair value in accordance with Accounting Standards Codification ("ASC") 805, "Business Combinations." Acquisition-related costs are expensed as incurred. The purchase price is allocated to the various tangible and intangible assets acquired and liabilities assumed, based on their estimated fair values, some of which are preliminary as of December 26, 2020. Determining the fair value of certain assets and liabilities is subjective in nature and often involves the use of significant estimates and assumptions, which are inherently uncertain. Many of the estimates and assumptions used to determine fair values, such as those used for intangible assets are made based on forecasted information and discount rates. In addition, the judgments made in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company's results of operations. During the measurement period, which is not to exceed one year from the acquisitions, the Company may record adjustments to the acquired assets and liabilities assumed, with a corresponding offset to goodwill or the preliminary purchase price, to reflect new information obtained about facts and circumstances that existed as of the acquisition dates. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Segment Information. The Company currently operates in four reportable segments: Vitamin Shoppe, American Freight, Liberty Tax, and Buddy’s. The Vitamin Shoppe segment is an omni-channel specialty retailer of vitamins, herbs, specialty supplements, sports nutrition and other health and wellness products. American Freight is a retail chain offering in-store and online access to furniture, mattresses, new and out-of-box home appliances and home accessories at discount prices. The Liberty Tax segment provides income tax services in the United States of America (the "U.S.") and Canada. The Buddy's segment is a specialty retailer of high quality, name-brand consumer electronics, residential furniture, appliances and household accessories through rent-to-own agreements. Principles of Consolidation. The Company consolidates any entities in which it has a controlling interest, the usual condition of which is ownership of a majority voting interest. Prior to April 1, 2020, the Company was the sole managing member of New Holdco and possessed ownership of more than 50 percent of the outstanding voting units. As a result, the Company consolidated the financial results of New Holdco and reported a non-controlling interest that represented the interests of the New Holdco units not held by the Company. As of April 1, 2020, the Company redeemed all outstanding New Holdco units for shares of common stock of the Company and now has an 100% interest in New Holdco. The Company does not possess any ownership interests in franchisee entities; however, the Company may provide financial support to franchisee entities. Because the Company's franchise arrangements provide franchisee entities the power to direct the activities that most significantly impact their economic performance, the Company does not consider itself the primary beneficiary of any such entity that meets the definition of a variable interest entity ("VIE"). Based on the results of management's analysis of potential VIEs, the Company has not consolidated any franchisee entities. The Company's maximum exposure to loss resulting from involvement with potential VIEs is attributable to accounts and notes receivables and future lease payments due from franchisees. When the Company does not have a controlling interest in an entity but has the ability to exert significant influence over the entity, the Company applies the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation. Revenues have been classified into product, service and other and rental revenues as further discussed in "Note 7 - Revenue." Costs of sales for product includes the cost of merchandise, transportation and warehousing costs. Service and other costs of sales include the direct costs of warranties. Rental cost of sales represents the amortization of inventory costs over the leased term. Other operating expenses, including employee costs, depreciation and amortization, and advertising expenses have been classified in selling, general and administrative expenses. The Company also includes occupancy costs in selling, general and administrative expenses. Assets and liabilities of the Company's Canadian operations have been translated into U.S. dollars using the exchange rate in effect at the end of the period. Revenues and expenses have been translated using the average exchange rates in effect each month of the period. Foreign exchange transaction gains and losses are recognized when incurred. The Company reclassifies to accounts payable checks issued in excess of funds available and reports them as cash flow from operating activities. The audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Merchandise Inventories. Inventory for the Buddy's segment is recorded at cost, including shipping and handling fees. Upon purchase, merchandise is not initially depreciated until it is leased or three months after the purchase date. Non-leased merchandise is depreciated on a straight-line basis over a period of 24 months. Leased merchandise is depreciated over the lease term of the rental agreement and recorded in rental cost of revenue. On a weekly basis, all damaged, lost, stolen, or unsalable merchandise identified is written off. Maintenance and repairs of lease merchandise are charged to operations as incurred. Inventory for the American Freight banner is comprised of finished goods and is valued at the lower of cost or market, with cost determined by the first-in, first out method. The Company writes down inventory, the impact of which is reflected in cost of sales in the consolidated statements of operations, if the cost of specific inventory items on hand exceeds the amount the Company expects to be realized from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. Inventory under the American Freight Outlet banner, previously the Sears Outlet segment, is recorded at the lower of cost or market using the weighted-average cost method. Inventory includes the purchase price of the inventory plus costs of freight for moving merchandise from vendors to distribution centers as well as from distribution centers to stores. A provision for estimated shrinkage is maintained based on the actual historical results of physical inventories. Estimates are compared to the actual results of the physical inventory counts as they are taken and adjust the shrink estimates accordingly. Inventory values are adjusted to the difference between the carrying value and the estimated market value, based on assumptions about future demand or when a permanent markdown indicates that the net realizable value of the inventory is less than cost. Inventory for the Vitamin Shoppe segment is recorded at the lower of cost or market value using the weighted-average cost method. Inventory includes costs directly incurred in bringing the product to its existing condition and location. In addition, the cost of inventory is reduced by purchase discounts and other allowances received from vendors. A markdown reserve is estimated based on a variety of factors, including, but not limited to, the amount of inventory on hand and its remaining shelf life, current and expected market conditions and product expiration dates. In addition, the Company has established a reserve for estimated inventory shrinkage based on the actual, historical shrinkage of its most recent physical inventories adjusted, if necessary, for current economic conditions and business trends. Physical inventories and cycle counts are taken on a regular basis. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from management expectations. Goodwill and Non-amortizing Intangible Assets. Goodwill and non-amortizing intangible assets, including the Buddy's, Vitamin Shoppe and American Freight tradenames, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and non-amortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performs a qualitative and/or quantitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value. The Company uses either a market multiple method or a discounted cash flow method to estimate the fair value of its reporting units and recognizes goodwill impairment for any excess of the carrying amount of a reporting unit’s goodwill over its estimated fair value. The Company evaluates the Buddy's, Vitamin Shoppe and American Freight tradenames for impairment by comparing its fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and non-amortizing intangible assets on the last day of the first month of the Company's third quarter. Refer to “Note 6 - Goodwill and Intangible Assets” for additional information on these balances. Intangible Assets and Asset Impairment. Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives of the assets, generally from two to ten years. Long-lived assets, such as property, equipment, and software, and other purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. Recognition and measurement of a potential impairment is performed for these assets at the lowest level where cash flows are individually identifiable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. Property, Equipment, and Software. Property, equipment, and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, generally three to five years for computer equipment, three to seven years for software, five to seven years for furniture and fixtures, and twenty to thirty years for buildings. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful lives of the assets. Certain allowable costs of software developed or obtained for internal use are capitalized and typically amortized over the estimated useful life of the software. Comprehensive Income. Comprehensive income consists of net income, foreign currency translation adjustments, and the unrealized gains or losses on derivatives determined to be cash flow hedges, net of taxes. Insurance Programs. The Company maintains its own insurance arrangements with third-party insurance companies for exposures incurred for a number of risks including worker's compensation and general liability claims. The liability represents an estimate of the discounted cost of claims incurred and is recorded in other current and long-term liabilities. The Company may use restricted cash as collateral for these programs which is recorded in "Other non-current assets". Stock-Based Compensation. The Company records the cost of its employee stock-based compensation as compensation expense in its consolidated statements of operations. Compensation costs related to stock options are based on the grant-date fair value of awards using the Black-Scholes-Merton option pricing model and considering forfeitures. Compensation costs related to restricted stock units are based on the grant-date fair value and are amortized on a straight-line basis over the vesting period. The Company recognizes compensation costs for an award that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Revenue Recognition. The following is a description of the principal activities from which the Company generates its revenues. For more detailed information regarding reportable segments, see "Note 16 - Segments." •Product revenues: These include sales of merchandise at the stores and online. Revenue is measured based on the amount of fixed consideration that the Company expects to receive, reduced by estimates for variable consideration such as returns. Revenue also excludes any amounts collected from customers and remitted or payable to governmental authorities. In arrangements where the Company has multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. The Company satisfies its performance obligations at the point of sale for retail store transactions and upon delivery for online transactions. The Company recognizes revenue for retail store and online transactions when it transfers control of the goods to the customer. Merchandise sales also include payments received for the exercise of the early purchase option offered through rental-purchase agreements or merchandise sold through point of sale transactions. Revenue for merchandise sales associated with rental purchase agreements is recognized when payment is received, and ownership of the merchandise passes to the customer. The remaining net value of merchandise sold is recorded to cost of sales at the time of the transaction. •Service and other revenues: These include royalties and advertising fees from franchisees, fees from the sales of franchises and area developer ("AD") territories, financial products, interest income from loans to franchisees and ADs, tax preparation services in the Company-owned stores, electronic filing fees, services and extended-service plans and financing programs. Commissions earned on services are presented net of related costs because the Company is acting as an agent in arranging the services for the customer and does not control the services being rendered. The Company recognizes revenue on the commissions on extended-service plans when it transfers control of the related goods to the customer. The Company recognizes franchise fee and AD fee revenue for the sales of individual territories on a straight-line basis over the initial contract term when the obligations of the Company to prepare the franchisee and AD for operation are substantially complete, not to exceed the estimated amount of cash to be received. Royalties and advertising fees are recognized as franchise territories generate sales. Tax return preparation fees and financial products revenue are recognized as revenue in the period in which related tax return is filed for the customer. Discounts for promotional programs are recorded at the time the return is filed and are recorded as reductions to revenues. Interest income on notes receivable is recognized based on the outstanding principal note balance less unrecognized revenue unless it is put on non-accrual status. Interest income on the unrecognized revenue portion of notes receivable is recognized when received. For accounts receivable, interest income is recognized based on the outstanding receivable balance over 30 days old, net of an allowance. •Rental revenue: The Company provides merchandise, consisting of consumer electronics, computers, residential furniture, appliances, and household accessories to its customers pursuant to rental-purchase agreements which provide for weekly, semi-monthly or monthly non-refundable rental payments. The average rental term is twelve to eighteen months and the Company maintains ownership of the lease merchandise until all payment obligations are satisfied under sales and lease ownership agreements. Customers have the option to purchase the leased goods at any point in the lease term. Customers can terminate the agreement at the end of any rental term without penalty. Therefore, rental transactions are accounted for as operating leases and rental revenue is recognized over the rental term. Cash received prior to the beginning of the lease term is recorded as deferred revenue. Revenue related to various reinstatement or late fees are recognized when paid by the customer. The Company offers additional product plans along with rental agreements that provide customers with liability protection against significant damage or loss of a product, and club membership benefits, including various discount programs, product services and replacement benefits in the event merchandise is damaged or lost. Customers renew product plans in conjunction with their rental term renewals and can cancel the plans at any time. Revenue for product plans is recognized over the term of the plan. Leases. The Company's lease portfolio primarily consists of leases for its retail store locations, office space and distribution centers. The Company also leases certain office equipment under finance leases. The finance lease right of use assets are included in Property, equipment and software and the finance lease liabilities are included in current installments of long-term obligations, and long-term obligations. The finance leases are immaterial to the financial statements. The Company subleases some of its real estate and equipment leases. The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets; the Company recognizes expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, lease right-of-use assets and lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate and the information available at the lease commencement date in determining the present value of future lease payments. Most leases include one or more options to renew and the exercise of renewal options is at the Company’s sole discretion. The Company does not include renewal options in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. The Company has lease agreements with lease and non-lease components, which the Company elects to combine as one lease component for all classes of underlying assets. Non-lease components include variable costs based on actual costs incurred by the lessor related to the payment of real estate taxes, common area maintenance, and insurance. These variable payments are expensed as incurred as variable lease costs. Due to the COVID-19 pandemic, the Company has been negotiating lease concessions with landlords. The lease concessions have been in the form of lease forgiveness, lease deferrals and lease deferrals with term extensions. If the total payments in the modified lease are substantially the same as or less than total payments in the original lease, the Company has elected to not evaluate whether the concession is a lease modification as defined in ASC 842 - "Leases". Derivative Instruments and Hedging Activities. The Company recognizes all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. For derivatives designated in hedging relationships, changes in fair value are either offset through earnings against the change in fair value of the hedged item attributable to the risk being hedged or recognized in accumulated other comprehensive loss to the extent the derivative is effective at offsetting the changes in cash flows being hedged until the hedged item affects earnings. The Company only enters into a derivative contract when it intends to designate the contract as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk; the derivative expires or is sold, terminated, or exercised; the cash flow hedge is de-designated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is no longer probable that a forecasted transaction will occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive loss related to the hedging relationship. Deferred Income Taxes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities, which are shown on the condensed consolidated balance sheets, are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company has elected to classify interest charged on a tax settlement in interest expense, and accrued penalties, if any, in selling, general, and administrative expenses. The determination of the Company's provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. The Company records unrecognized tax benefit liabilities for known or anticipated tax issues based on an analysis of whether, and the extent to which, additional taxes will be due. Reclassifications. Certain prior year amounts have been reclassified to conform to the current year presentation. The Company reclassified amounts in the consolidated statements of cash flows between operating activity lines for the Transition Period and years ended April 30, 2019 and 2018. These reclassifications had no impact on the total operating activities balances. Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, "Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which changes how companies will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard replaces the "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost (which generally will result in the earlier recognition of allowances for losses) and requires companies to record allowances for available-for-sale debt securities, rather than reduce the carrying amount. In addition, companies will have to disclose significantly more information, including information used to track credit quality by year of origination, for most financing receivables. The ASU should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard to its consolidated financial statements. The London Interbank Offered Rate (“LIBOR”) is scheduled to be discontinued on December 31, 2021. In an effort to address the various challenges created by such discontinuance, the FASB issued an amendment to existing guidance, ASU No. 2020-04, "Reference Rate Reform." The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, borrowings) necessitated by the reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by the reference rate reform. Application of the guidance in the amendment is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. The Company is currently evaluating the impacts of reference rate reform and the new guidance on its consolidated financial statements.

Acquisitions (Notes)

12 Months Ended

Dec. 26, 2020

Acquisitions [Abstract]

Acquisitions

American Freight Acquisition

On February 14, 2020, the Company completed its acquisition of American Freight (the "American Freight Acquisition"). The Company accounted for the transaction as a business combination using the acquisition method of accounting in accordance with ASC 805 - "Business Combinations." The preliminary fair value of the consideration transferred at the acquisition date was $357.3 million.

The table below summarizes the preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed in the American Freight Acquisition as of February 14, 2020. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in an adjustment to the preliminary values presented below.


(In thousands)	Preliminary 2/14/2020
Cash and cash equivalents	$	3,840
Prepaid expenses and other current assets	3,284
Inventories, net	99,200
Property, equipment and software, net	11,032
Goodwill	334,543
Operating lease right-of-use assets	91,101
Other intangible assets, net	70,200
Other non-current assets	1,607
Total assets	614,807
Current operating lease liabilities	17,242
Accounts payable	44,696
Accrued expenses and other current liabilities	26,451
Current installments of long-term obligations	3,210
Long-term obligations, excluding current installments	93,975
Deferred tax liabilities	10,520
Non-current operating lease liabilities	61,450
Total liabilities	257,544
Consideration transferred	$	357,263

Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired. The goodwill recognized is attributable to operational synergies in the expected franchise models and growth opportunities.

The Company identified the American Freight trade name as an indefinite-lived intangible asset with a fair value of $70.2 million. The trade name is not subject to amortization but will be evaluated annually for impairment.

Lease right-of-use assets and lease liabilities consists of leases for retail store locations, vehicles and office equipment. The lease right of use assets incorporates a favorable adjustment of $11.5 million, net for favorable and unfavorable American Freight leases (as compared to prevailing market rates) which will be amortized over the remaining lease terms.

The property, equipment and software consists of leasehold improvements of $7.6 million, office furniture, fixtures and equipment of $2.2 million, computer hardware and software of $1.1 million and construction in progress of $0.2 million.

Total revenue and operating income for American Freight for the period from February 15, 2020 through December 26, 2020 are as follows:


(In thousands)	Period from 2/15/2020 - 12/26/2020
Revenue	$	462,702
Income from operations	$	52,197

Vitamin Shoppe Acquisition

On December 16, 2019, the Company completed the acquisition of Vitamin Shoppe (the "Vitamin Shoppe Acquisition") for an aggregate purchase price of $161.8 million. The Company accounted for the transaction as a business combination using the acquisition method of accounting. In the year ended December 26, 2020, the preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed were finalized which resulted in a decrease in goodwill of $3.7 million.

Sears Outlet Acquisition

On October 23, 2019, the Company completed the acquisition of the Sears Outlet business from Sears Hometown and Outlet Stores, Inc. (the "Sears Outlet Acquisition") for an aggregate purchase price of $128.8 million. The Company accounted for the transaction as a business combination using the acquisition method of accounting. In the year ended December 26, 2020, the preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed were finalized which resulted in an increase in goodwill of $2.3 million.

Buddy's Acquisition

On July 10, 2019, the Company completed the acquisition of Buddy's for an enterprise value of approximately $122.0 million (the "Buddy's Acquisition"). The Company accounted for the transaction as a business combination using the acquisition method of accounting. In the year ended December 26, 2020, the preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed were finalized which resulted in an increase in goodwill of $2.0 million.

Please refer to "Note 6. Goodwill and Intangible Assets" for a complete disclosure of the changes in goodwill for the fiscal year.

Other acquisitions

Subsequent to December 26, 2020, the Company completed the Furniture Factory Acquisition and announced the Pet Supplies Plus Acquisition. Refer to "Note 17 - Subsequent Events", for further details on these acquisitions.

On September 30, 2019, the Company acquired 21 Buddy’s Home Furnishings stores (the “Buddy’s Partners Acquisition”) from franchisees of the Company's Buddy’s segment. In connection with the Buddy's Partners Acquisition, the sellers received, in aggregate, 1,350,000 New Holdco units and 270,000 shares of Preferred Stock with an estimated fair value of $16.2 million. In addition to the issuance of New Holdco units and Preferred Stock, the Company also forgave $0.6 million of receivables due to Buddy’s from the sellers. This resulted in a total aggregate purchase price of $16.8 million.

On August 23, 2019, the Company acquired 41 Buddy’s Home Furnishing stores from A-Team, a franchisee of the Buddy’s segment, for the total consideration of $26.6 million (the "A-Team Leasing Acquisition").

Acquisition costs

As of the year ended December 26, 2020, the Company has incurred approximately $8.1 million of acquisition-related costs for the American Freight Acquisition. As of the Transition Period, the Company incurred approximately $17.4 million of acquisition-related costs for the Vitamin Shoppe Acquisition, the Sears Outlet Acquisition, the Buddy’s Acquisition, the A-Team Leasing Acquisition, and the Buddy’s Partners Acquisition. These costs include investment banker fees, legal fees, due diligence and other external professional costs that the Company has recorded in selling, general, and administrative expenses.

Pro forma financial information

The following unaudited consolidated pro forma summary has been prepared by adjusting the Company's historical data to give effect to the American Freight Acquisition, the Vitamin Shoppe Acquisition, the Sears Outlet Acquisition, the Buddy's Acquisition, the A-Team Leasing Acquisition and the Buddy's Partners Acquisition (the "Acquisitions") as if they had occurred on May 1, 2018.


	(Unaudited)
(In thousands)	Fiscal Year Ended 12/26/2020		Transition Period Ended 12/28/2019		Fiscal Year Ended 4/30/2019
Revenue	$	2,201,163	$	1,313,590	$	2,266,656
Net income (loss)	52,470		(73,051)		(60,319)
Basic net income per share	1.52		(4.38)		(4.37)
Diluted net income per share	1.50		(4.38)		(4.37)

These unaudited pro forma results include adjustments such as inventory step-up, amortization of acquired intangible assets, depreciation of acquired property, equipment, and software and interest expense on debt financing in connection with the Acquisitions. Material, nonrecurring pro forma adjustments directly attributable to the Acquisitions include the following. Acquired inventory step-up to its fair value of $30.3 million was removed from net income (loss) for the year ended December 26, 2020 and the Transition Period, and recognized as an incremental product cost in the year ended April 30, 2019. Acquisition related costs of $30.5 million were removed from net income (loss) for the year ended December 26, 2020 and the Transition Period, and recognized as an expense in the year ended April 30, 2019.

The unaudited consolidated pro forma financial information was prepared in accordance with accounting standards and is not necessarily indicative of the results of operations that would have occurred if the American Freight Acquisition, Vitamin Shoppe Acquisition, the Sears Outlet Acquisition, the Buddy's Acquisition, the A-Team Leasing Acquisition or the Buddy's Partners Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.

The unaudited pro forma results do not reflect events that either have occurred or may occur after these Acquisitions, including, but not limited to, the anticipated realization of operating synergies in subsequent periods. They also do not give effect to certain charges that the Company expects to incur in connection with these acquisitions, including, but not limited to, additional professional fees and employee integration.

Assets Disposition (Notes)	12 Months Ended
Assets Disposition (Notes)	Dec. 26, 2020
Acquisitions [Abstract]
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	Assets DispositionOn November 11, 2020, the Company completed the sale of 47 Buddy's Company-owned stores to bebe stores, inc. ("bebe") for $35.0 million. The Company wrote off $11.4 million of goodwill and recognized a gain of $2.0 million in connection with the sale. The agreement includes a planned development schedule for bebe to open 20 new Buddy’s locations. The 47 Buddy's stores are now franchise locations within the Buddy's segment.

Accounts and Notes Receivable - Text Blocks

12 Months Ended

Dec. 26, 2020

Receivables [Abstract]

Notes and Accounts Receivable

Current and non-current receivables, as of December 26, 2020 and December 28, 2019 are presented in the consolidated balance sheets as follows:


(In thousands)	12/26/2020		12/28/2019
Accounts receivable, net	$	58,494	$	44,333
Notes receivable, net	27,228		37,994
Interest receivable, net	2,257		3,132
Income tax receivable	11,118		3,356
Allowance for doubtful accounts	(8,487)		(9,122)
Current receivables, net	90,610		79,693
Notes receivable - non-current, net	17,659		19,501
Allowance for doubtful accounts - non-current	(970)		(863)
Non-current receivables, net	16,689		18,638
Total receivables	$	107,299	$	98,331

The Company provides select financing to ADs and franchisees for the purchase of franchises, areas, Company-owned offices, and operating loans for working capital and equipment needs. The franchise-related notes generally are payable over five years and the operating loans generally are due within one year. Most notes bear interest at 12%.

Most of the notes receivable are due from the Company's franchisees and AD and are collateralized by the underlying franchise and when the franchise or AD is an entity, are guaranteed by the owners of the respective entity. The debtors' ability to repay the notes is dependent upon both the performance of the franchisee's industry as a whole and the individual franchise or AD areas.

The table above includes unrecognized revenue. Unrecognized revenue relates to the portion of franchise fees and AD fees that the Company has not yet recognized, in the case of sales of Company-owned offices, the financed portion of gains related to these sales in each case where revenue has not yet been recognized. For gains related to the sale of Company-owned offices, revenue is recorded as note payments are received by the Company. The Company evaluates the amount it anticipates collecting for AD and franchise fees on a periodic basis. Unrecognized revenue was $5.1 million and $4.9 million at December 26, 2020 and December 28, 2019, respectively.

Allowance for Doubtful Accounts

The adequacy of the allowance for doubtful accounts is assessed on a quarterly basis and adjusted as deemed necessary. Management believes the recorded allowance is adequate based upon its consideration of the estimated value of the franchises and AD areas, which collateralize the receivables. Any adverse change in the individual franchisees' or ADs' areas could affect the Company's estimate of the allowance.

Activity in the allowance for doubtful accounts for the year ended December 26, 2020 and the Transition Period was as follows:


(In thousands)	12/26/2020		12/28/2019
Balance at beginning of year	$	9,985	$	11,816
Provision for doubtful accounts	5,917		5,375
Write-offs and reduction from repurchases of franchises	(6,432)		(7,252)
Foreign currency adjustment	(13)		46
Balance at end of year	$	9,457	$	9,985

Management considers specific accounts and notes receivable to be impaired if the net amounts due exceed the fair value of the underlying franchise at the time of the assessment and estimates an allowance for doubtful accounts based on that excess.

In establishing the fair value of the underlying franchise, management considers a variety of factors including recent sales of Company-owned stores, recent sales between franchisees, net fees of open offices earned during the most recently completed tax season, and the number of unopened offices. While not specifically identifiable as of the balance sheet date, the Company's experience also indicates that a portion of other accounts and notes receivable are also impaired and therefore reserved, because management does not expect to collect all principal and interest due under the current contractual terms. Net amounts due include contractually obligated accounts and notes receivable plus accrued interest, net of unrecognized revenue, reduced by the allowance for uncollected interest, amounts due to ADs, related deferred revenue, and amounts owed to the franchisee by the Company.

On July 10, 2020, the Company entered into a Senior Secured Super Priority Debtor-In-Possession Delayed Draw Term Loan Agreement (the “DIP DDTL Agreement”) with Tuesday Morning Corporation (“Tuesday Morning”) and certain of its direct and indirect subsidiaries. Pursuant to the DIP DDTL Agreement, the Company agreed to lend Tuesday Morning up to an aggregate principal amount of $25.0 million in the form of delayed draw term loans (the “DIP Term Facility”). As of December 26, 2020, the DIP Term Facility has been terminated and no amounts had been drawn under this agreement.

On November 4, 2020, the Company entered into a super-priority, secured, debtor-in-possession credit facility (the “DIP Facility”) with Furniture Factory Ultimate Holding, L.P. (“FFO”). The DIP Facility consists of a multi-draw term loan facility in the aggregate principal amount of up to $6.5 million. Once repaid, amounts under the DIP Facility may not be reborrowed. As of December 26, 2020, $6.5 million of the DIP Facility is outstanding.

Analysis of Past Due Receivables

The breakdown of accounts and notes receivable past due at December 26, 2020 and December 28, 2019 was as follows:


	12/26/2020
(In thousands)	Past due		Current		Interest receivable, net		Total receivables
Accounts receivable, net	$	24,325	$	34,169	$	—	$	58,494
Notes and interest receivable, net	8,727		36,160		2,257		47,144
Total accounts, notes, and interest receivable, net	$	33,052	$	70,329	$	2,257	$	105,638


	12/28/2019
(In thousands)	Past due		Current		Interest receivable, net		Total receivables
Accounts receivable, net	$	30,192	$	14,141	$	—	$	44,333
Notes and interest receivable, net	8,471		49,024		3,132		60,627
Total accounts, notes, and interest receivable, net	$	38,663	$	63,165	$	3,132	$	104,960

Accounts receivable are considered to be past due if unpaid 30 days after billing and notes receivable are considered past due if unpaid 90 days after the due date. If it is determined the likelihood of collecting substantially all of the note and accrued interest is not probable the notes are put on non-accrual status. The Company's investment in notes receivable on non-accrual status at December 26, 2020 and December 28, 2019 was $6.8 million and $8.5 million, respectively. Payments received on notes in non-accrual status are applied to the principal note balance until the note is current and then to interest income. Non-accrual notes that are paid current are moved back into accrual status during the next annual review.

Property, Equipment, and Software, Net - Text Blocks

12 Months Ended

Dec. 26, 2020

Property, Plant and Equipment [Abstract]

Property, Equipment, and Software, Net

Property, equipment, and software at December 26, 2020, and December 28, 2019 was as follows:


(In thousands)	12/26/2020		12/28/2019
Land and land improvements	$	590	$	1,592
Buildings and building improvements	1,546		7,972
Leasehold improvements	67,627		52,755
Furniture, fixtures, and equipment	71,836		59,254
Software	55,774		42,373
Construction in progress	3,773		1,842
Finance lease asset	2,045		1,984
Property, equipment, and software, gross	203,191		167,772
Less accumulated depreciation and amortization	59,685		17,625
Property, equipment, and software, net	$	143,506	$	150,147

The software included above includes both internally developed software and purchased software. Included in software are $0.6 million, and $0.1 million of assets that had not been placed into service at December 26, 2020 and December 28, 2019, respectively. During the Transition Period, the Company had an impairment charge of $20.2 million, related to internally developed software that is no longer in use. These amounts are included in selling, general, and administrative expenses, in the accompanying consolidated statements of operations.

Total depreciation and amortization expense on property, equipment, and software was $48.9 million, $7.4 million, $8.4 million and $5.6 million for the year ended December 26, 2020, the Transition Period, and the years ended April 30, 2019 and April 30, 2018, respectively.

Goodwill and Intangible Assets - Text Blocks

12 Months Ended

Dec. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill for the year ended December 26, 2020 and December 28, 2019 were as follows:


(In thousands)	12/26/2020		12/28/2019
Balance at beginning of year	$	134,301	$	6,566
Acquisitions of assets from franchisees and third parties	1,758		3,658
Buddy's Acquisition	—		75,038
Buddy's Partners Acquisition	—		7,217
A-Team Leasing Acquisition	—		6,287
Sears Outlet Acquisition	—		31,028
Vitamin Shoppe Acquisition	—		4,951
American Freight Acquisition	334,543		—
Disposals and foreign currency changes, net	(13,957)		(444)
Impairments	(273)		—
Purchase price reallocation	605		—
Balance at end of year	$	456,977	$	134,301

The Company performed its annual impairment review of goodwill and recorded impairment expense of $0.3 million, $0.4 million and $0.1 million for the years ended December 26, 2020, April 30, 2019 and April 30, 2018, respectively. The Company did not record impairment expense for the Transition Period.

The impairment recorded above was determined using the fair value of the underlying franchise, and where appropriate a discounted cash flow model, and is included in selling, general, and administrative expenses, in the accompanying consolidated statements of operations.

Components of intangible assets as of December 26, 2020 and December 28, 2019, were as follows:


	12/26/2020
(In thousands)	Weighted-average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Tradenames (1)	3 years	$	93,702	$	(111)	$	93,591
Customer contracts	6 years	8,780		(2,159)		6,621
Franchise agreements and non-compete agreements	10 years	10,581		(1,569)		9,012
Customer Lists	4 years	3,908		(2,552)		1,356
Reacquired rights	3 years	2,549		(983)		1,566
AD rights	9 years	39,972		(17,423)		22,549
Total intangible assets		$	159,492	$	(24,797)	$	134,695

(1) $70.2 million, $11.1 million and $12.0 million of tradenames were acquired in the American Freight Acquisition, Buddy's Acquisition, and Vitamin Shoppe Acquisition, respectively. These tradenames have an indefinite life and they are tested for impairment on an annual basis.


	12/28/2019
(In thousands)	Weighted-average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Tradenames (1)	3 years	$	23,534	$	(72)	$	23,462
Customer contracts	6 years	12,736		(886)		11,850
Franchise agreements and non-compete agreements	10 years	10,609		(486)		10,123
Customer Lists	4 years	4,338		(2,559)		1,779
Reacquired rights	5 years	11,577		(2,053)		9,524
AD rights	9 years	37,263		(16,411)		20,852
Total intangible assets		$	100,057	$	(22,467)	$	77,590

(1) $11.1 million and $12.0 million of tradenames were acquired in the Buddy's and Vitamin Shoppe Acquisitions, respectively. These tradenames have an indefinite life and they are tested for impairment on an annual basis.

For the year ended December 26, 2020, and the Transition Period, the Company recorded intangible assets of $80.5 million and $63.4 million, respectively.

The Company reviews amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. During the year ended December 26, 2020, the Transition Period, and years ended April 30, 2019 and April 30, 2018, an impairment analysis was performed for amortizable intangible assets. Write-downs of assets acquired from franchisees relate to Company-owned offices that were subsequently closed and impairment of the fair value of existing assets of Company-owned offices. As a result, the carrying values of assets acquired from franchisees were reduced by $0.3 million, $0.4 million and $0.1 million for the years ended December 26, 2020, April 30, 2019 and April 30, 2018, respectively. The Company did not record impairment expense related to the amortizable intangible assets during the Transition Period. These amounts were included in selling, general, and administrative expenses, in the accompanying consolidated statements of operations. The Company estimated the fair value of assets associated with Company-owned offices based on various models.

For the year ended December 26, 2020, the Transition Period, and years ended April 30, 2019 and April 30, 2018, amortization expense was $13.4 million, $4.8 million, $5.2 million, and $5.7 million, respectively. Annual amortization expense for the next five years is estimated to be as follows:


(In thousands)	As of 12/26/2020:
2021	$	10,340
2022	7,828
2023	6,665
2024	5,540
2025	3,731
Thereafter	7,291
Total estimated amortization expense	$	41,395